Easements and Electrical Facilities

Easements & Electrical
Facilities.

Executive Summary

In 2006 following the 2004 and 2005 hurricane seasons that were damaging to electrical
systems throughout Florida, the Florida Public Service Commission passed Order #25-06.0342
which "requires the cost-effective strengthening of critical electric infrastructure to increase the
ability of transmission and distribution facilities to withstand extreme weather conditions, and
reduce restoration costs and outage times to end-use customers associated with extreme
weather conditions."

Florida Public Service Commission

The PSC also adopted a companion Order 25-6.0341 which states "in order to facilitate
safe and efficient access for installation and maintenance, to the extent feasible, and cost effective,
electric distribution facilities shall be placed adjacent to a public road, normally in
front of the customers' premises."

As a result of PSC Order#25-06.0342, KEYS has undertaken a multi-year program to
respond to the PSC Order which has included testing all poles; replacing all poles identified as
deficient; changing our construction standards; and fortifying infrastructure designated as
critical (feeder to hospital). Additionally, in order to comply with Order 25-6.0341, KEYS staff
has been developing a plan to address facilities that are in inaccessible locations in order to
comply with PSC orders and to further have a strong, reliable system. The Utility Board
participated in a workshop on the subject on August 23, 2011 in order to better understand the
scope of the project and the impacts on customers. Based on input from the Utility Board and
continued analysis, KEYS staff has determined that inaccessible facilities should be divided into
two categories – those that support primary lines and those that support secondary lines.
KEYS Response:

Phase I will address inaccessible facilities that support primary lines and will be
addressed over a 36-month period from the time the plan is approved. The primary facilities
have been organized into 13 distinct circuits and staff developed the plan by prioritizing the
circuits based on reliability criteria. In total, approximately 122 poles will be installed and this
will affect up to 163 customer risers. KEYS' Engineering Department will complete all design
work and it is anticipated that all construction work will be completed by KEYS' Transmission
and Distribution crews. The total cost for constructing the new lines and removing the old lines
is estimated at $1,036,614.

Program Description

KEYS' Engineering Department will work closely with the affected customers to help
them identify a solution. KEYS (or a contractor TBD) will either set a customer pole, which the
customer will assume ownership of, so the customer can continue to use the existing meter
center/riser OR KEYS will reimburse the customer up to $2,100 of the costs associated with
hiring an electrician to modify the meter center/riser (relocate or extend) so it can receive
power from the new lines. This cost is estimated to be $352,871.

KEYS will work closely with the City of Key West and Monroe County throughout the project on a variety of
issues including: ADA Compliance, Customer Coordination, Tree Trimming, and Street Lights.
Additionally, KEYS will work with AT&T and Comcast to urge these telecommunications
companies to move expediently.

Coordination

KEYS' Engineering Field Representatives will meet with each customer to help establish
a solution that best meets the customer's and KEYS' needs.